Export chief urges Central Bank to stop strengthening lira

ISTANBUL

DHA photo

The top representative of Turkish exporters has called on the Central Bank to intervene in the declining currency rate “to preserve the strong foreign trade performance” of the first quarter.

“The Central Bank should start a gradual reduction [in interest rates] by sifting through the market and considering inflation figures,” Turkish Exporters Association (TİM) Chairman Mehmet Büyükekşi said on May 12, speaking at a meeting to present the institution’s “Economy and Foreign Trade 2014” report.

“The currency rate shouldn’t go down … The Central Bank knows its duties well and this task falls on it. If it needs to buy foreign exchange, it should. If it needs to cut the interest rate, it should,” Büyükekşi said.

He also urged the bank to step in urgently, without waiting for monthly monetary policy meetings.

The weakening of the Turkish Lira, which fell down to 2.39 against the U.S. dollar, since last May has been supporting Turkish exporters by boosting Turkish goods’ allure in foreign markets as they become cheaper.

With the partial ease of political tension after the March 30 local elections and the better-than-expected macroeconomic development, the lira has embarked on a stronger trend against the dollar, hovering around the level of 2.08 in the recent weeks.